Sunday, 2 October 2011

In its official advice to the Government on this year’s pay rates, the commission raised concerns about younger workers, the first such warning since the introduction of the legal minimum rate in 1999.

"Recent research has found evidence that in difficult economic circumstances the level of the minimum wage may have had an impact on the employment of young people," the commission told ministers.

Mr Butcher said some youth unemployment was caused by the economic slowdown hurting businesses, while some of it was specifically due to a "minimum wage effect".